RNS Number:5737P
Camellia PLC
11 September 2003


                                 Camellia Plc

                Interim results for the period ended 30th June 2003

                              Chairman's Statement

Pre-tax profits of #2,169,000 for the six months to 30th June 2003 compared with
#2,221,000 for the same period last year.

The Board has declared an interim dividend of 20p per ordinary share payable on
7th November 2003 to shareholders on the register on 17th October 2003.

Tea and Coffee
India
Crops are slightly ahead of last year, but prices are very disappointing. This
is partly due to an increasing amount of product coming from the smallholder
sector. Instant tea is having a good year and has received orders for production
well into 2004.

Bangladesh
Prices are higher than for the same period last year and crops are also ahead.
Bangladesh has the advantage of an enlarging domestic market and good export
orders to Pakistan.

Africa
Tea production is comparable to the previous year, but prices have been
disappointing. A drought in South Africa resulted in a reduced tea crop and some
gardens were closed during the period. Coffee prices continue at levels
substantially below cost of production. The very strong South African Rand and
relatively strong Kenya Shilling have resulted in a significant reduction in
income, whilst costs continue to increase in local currency terms.

Citrus
We have encountered adverse weather conditions in Australia, where drought has
led to a reduction in crop. Severe water restrictions are already in place and
this must inevitably impact on future production levels.

Edible Nuts
Production of macadamia in Malawi and South Africa has been satisfactory and
prices have been relatively strong in dollar terms. Pistachio production in
California will be reduced on account of the alternate bearing cycle.

Other Horticulture
Climatic conditions in South Africa and Chile led to poor table grape production
although wine grape production was satisfactory in Australia and South Africa.
The wine market, however, continues to be over supplied and prices are under
pressure. The recent improvement in the Brazilian operations has continued into
2003 and the prospects for the year are satisfactory assuming stable currency
rates. Rubber production in Bangladesh continues to meet its budget and prices
are satisfactory.

Food Storage and Distribution
Profits are considerably below expectation from Associated Cold Stores &
Transport as pressure on margins continues. W. G. White is suffering from a
decline in caviar sales.

Engineering
Our engineering activities have experienced mixed fortunes during the period
with some reasonable results being countered by a continued shortage of activity
in the aerospace and North Sea oil exploration sectors.

Banking
The reorganisation of Duncan Lawrie has continued during 2003. The business
support and processing functions have been relocated to group premises at
Wrotham thereby offering the opportunity of better utilisation of space.
Increased investment activity and a reduction in costs has resulted in the bank
making a welcome return to profitability.

Pharmaceutical
Our associated company, Siegfried AG, produced very satisfactory half-year
results, which included a large one-off licence fee for its generics business.
For the second half of 2003, Siegfried has expressed caution regarding its
trading prospects and expects lower sales due to exchange rate movements and the
discontinuation of two important products. The downturn in the market for
Siegfried products will be more pronounced in 2004, but action to reduce costs
has already been implemented.

Other Associated Undertakings
The United Leasing Company Limited and the United Insurance Company Limited in
Bangladesh have both enjoyed a reasonable first half to the year and the
prospects of these companies for the full year remain encouraging.

Prospects
Linton Park has experienced very difficult conditions in a number of its trading
activities and at present there appears to be little prospect of any
alleviation. Tea operations in India are also facing an uncertain future. It is
difficult to make any definitive prediction of the outcome for the full year,
but the prospects are not encouraging.


M C Perkins
Chairman                                                        Linton Park
                                                                Linton
                                                                Near Maidstone
11th September 2003                                             Kent ME17 4AB


                                                





                   Consolidated Profit and Loss Account
                 for the six months ended 30th June 2003

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                         Notes        #'000             #'000             #'000
Turnover
- continuing operations              80,502            77,706           169,511
- discontinued operations                 -             3,577             7,012
                                   --------          --------         ---------
                           1         80,502            81,283           176,523
                                   --------          --------         ---------
Operating (loss)/profit
- continuing operations    1         (4,030)           (1,847)            5,853
- discontinued operations                 -               (67)              136
                                   --------          --------         ---------
                                     (4,030)           (1,914)            5,989
Share of results of
 associates                           6,692             5,447            11,670
                                   --------          --------         ---------
                           1          2,662             3,533            17,659
Investment income                       713               792             1,431

Profit on disposal of
 fixed asset investments   3            558               182               170
Profit on disposal of
 fixed assets                           325                 -               195
Profit/(provision for loss)
 on disposal of a
 subsidiary and a business 4             98                 -               255
                                  ---------          --------         ---------
Profit on ordinary 
 activities before interest           4,356             4,507            19,710
Net interest payable and 
 similar charges           5          2,187             2,286             4,281
                                  ---------          --------         ---------
Profit on ordinary
 activities before taxation           2,169             2,221            15,429
Taxation on profit on 
 ordinary activities       6          1,292             2,505             4,827
                                  ---------          --------         ---------
Profit/(loss) on ordinary
 activities after taxation              877              (284)           10,602
Interest of minority 
 shareholders                           154             1,045             3,453
                                  ---------         ---------        ----------
Attributable profit/(loss)
 for the period                         723            (1,329)            7,149
                                 ----------        ----------       -----------

Dividends                 7             519               532             2,270

Earnings per share        8           27.75p           (49.95)p          269.57p






                             Consolidated Balance Sheet
                                  at 30th June 2003

                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000
Fixed assets
Intangible assets
Goodwill
 Positive                             1,218             1,183             1,265
 Negative                            (3,422)           (3,874)           (3,648)
                                   --------          --------         ---------
                                     (2,204)           (2,691)           (2,383)
Tangible assets                     168,841           167,544           166,232
Investments                          81,457            76,725            79,387
                                   --------          --------         ---------
                                    248,094           241,578           243,236
                                   --------          --------         ---------
Current assets
Stocks                               28,894            31,203            31,467
Debtors                              60,645            55,305            56,650
Cash at banks and in hand (note 9)  162,352           172,178           154,738
                                   --------          --------         ---------
                                    251,891           258,686           242,855
Creditors: amounts falling due 
 within one year                   (224,423)         (223,553)         (210,650)
                                   --------          --------         ---------
Net current assets                   27,468            35,133            32,205
                                   --------          --------         ---------
Total assets less current
 liabilities                        275,562           276,711           275,441
Creditors: amounts falling due
 after more than one year           (38,428)          (41,357)          (38,047)
Provisions for liabilities and 
 charges                             (6,070)           (7,122)           (7,240)
                                   --------          --------         ---------
                                    231,064           228,232           230,154
                                   --------          --------         ---------
Capital and reserves
Called up share capital                 260               266               264
Reserves                            170,439           168,134           170,135
                                   --------          --------         ---------
Equity shareholders' funds          170,699           168,400           170,399
Minority shareholders' interest      60,365            59,832            59,755
                                   --------          --------         ---------
                                    231,064           228,232           230,154
                                   --------          --------         ---------




                          Consolidated Cash Flow Statement
                       for the six months ended 30th June 2003

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                            Notes     #'000             #'000             #'000

Net cash flow from 
 operating activities         10      1,372             3,243            12,810
Dividends received/capital
 distribution from associates         2,114               158             1,031
Returns on investments
 and servicing of finance            (1,951)           (2,953)           (4,020)
Taxation paid                          (645)           (1,330)           (2,736)
Capital expenditure and
 financial investment                (3,569)           (4,742)          (10,635)
Acquisitions and disposals              971               412             3,699
Equity dividends paid                     -                 -            (2,287)
                                   --------          --------         ---------
Cash outflow before 
 financing                           (1,708)           (5,212)           (2,138)
Financing
New loans                             4,916             5,873             5,242
Loan and finance lease 
 payments                            (3,917)           (3,155)           (6,264)
Purchase of own shares               (1,259)           (1,514)           (2,079)
                                   --------          --------         ---------
Decrease in cash in the 
 period                       11     (1,968)           (4,008)           (5,239)
                                   --------          --------         ---------




                   Statement of Total Recognised Gains and Losses
                       for the six months ended 30th June 2003

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000

Attributable profit/(loss)
 for the period                         723            (1,329)            7,149
Exchange differences                  1,355            (2,738)           (6,914)
                                   --------          --------         ---------
Total recognised gains and
 losses for the period                2,078            (4,067)              235
Prior period adjustment                   -            (4,515)           (4,515)
                                   --------          --------         ---------
                                      2,078            (8,582)           (4,280)
                                   --------          --------         ---------

The prior period adjustment is the additional deferred tax provision
attributable to equity shareholders arising from the adoption of FRS 19 -
'Deferred Tax'.



                  Reconciliation of Movement in Shareholders' Funds
                       for the six months ended 30th June 2003

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000

Attributable profit/(loss)
 for the period                         723            (1,329)            7,149
Dividends                              (519)             (532)           (2,270)
Exchange differences                  1,355            (2,738)           (6,914)
Purchase of own shares               (1,259)           (1,514)           (2,079)
                                   --------          --------         ---------
Net movement to shareholders' funds     300            (6,113)           (4,114)
Opening equity shareholders' funds  170,399           174,513           174,513
                                   --------          --------         ---------
Closing equity shareholders' funds  170,699           168,400           170,399
                                   --------          --------         ---------





                           Notes to the Accounts

1 Segmental analysis of turnover and operating profit/(loss)

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000
Turnover
By activity
Agriculture and horticulture         50,967            48,496           111,327
Trading and agency                      205               174               133
Food storage and distribution        20,452            21,200            42,791
Engineering                           7,899             6,743            13,122
Property leasing                        970               972             2,068
Central management and miscellaneous      9               121                70
                                   --------          --------         ---------
                                     80,502            77,706           169,511
Discontinued - Trading and agency         -             3,447             6,761
Discontinued - Fine art trading           -               130               251
                                   --------          --------         ---------
                                     80,502            81,283           176,523
                                   --------          --------         ---------
By country of origin
United Kingdom                       24,497            23,822            47,168
Continental Europe                    4,797             4,959            10,290
India                                12,110            11,092            32,112
Kenya                                 9,825            10,025            20,787
Malawi                                7,291             7,232             9,634
Bangladesh                            3,104             3,648             8,966
North America                           244               146             1,439
South America and Bermuda             1,750             1,471             1,422
Australia                             9,399             7,869            22,858
South Africa                          7,485             7,442            14,835
                                   --------          --------         ---------
                                     80,502            77,706           169,511
Discontinued - United Kingdom             -             3,577             7,012
                                   --------          --------         ---------
                                     80,502            81,283           176,523
                                   --------          --------         ---------
Operating Profit
By activity
Agriculture and horticulture         (2,595)             (714)            8,842
Trading and agency                      724               690               501
Food storage and distribution          (441)              282               576
Engineering                             453               478               421
Property leasing                        951               942             1,993
Banking                                 187              (287)              (83)
Central management and miscellaneous (3,312)           (3,241)           (5,595)
                                   --------          --------         ---------
                                     (4,033)           (1,850)            6,655
Discontinued - Trading and agency         -                35                (3)
Discontinued - Fine art trading           -              (102)              139
                                   --------          --------         ---------
                                     (4,033)           (1,917)            6,791
Profit on sale of investments 
 to group company included in
 banking results                          -                 -              (795)
Net interest received/(paid) by
 banking operations from/to 
 group companies                          3                 3                (7)
                                   --------          --------         ---------
                                     (4,030)           (1,914)            5,989
Associated undertakings
Agriculture and horticulture            (85)             (116)              (44)
Pharmaceutical                        6,242             5,108            10,504
Insurance and leasing                   535               455             1,210
                                   --------          --------         ---------
                                      2,662             3,533            17,659
                                   --------          --------         ---------

Operating Profit
By country of origin
United Kingdom                       (1,251)             (933)           (2,657)
Continental Europe                       (2)                2               120
India                                (3,234)           (4,070)              (51)
Kenya                                   114             1,043             3,209
Malawi                                2,384             2,303             1,563
Bangladesh                             (272)             (943)            1,053
North America                           (36)             (160)              460
South America and Bermuda               447               (81)             (542)
Australia                              (589)               89             1,452
South Africa                         (1,591)              903             1,246
                                   --------          --------         ---------
                                     (4,030)           (1,847)            5,853
Discontinued - United Kingdom             -               (67)              136
                                   --------          --------         ---------
                                     (4,030)           (1,914)            5,989
                                   --------          --------         ---------

2 Business interruption insurance proceeds of #268,000 (2002 six months:
#415,000 - year: #829,000) have been credited to operating profit.

3 The profit on disposal of #558,000 in the six months to 30th June 2003,
relates to the disposal of an unlisted investment in The Tay Salmon Fisheries
Company Limited in which the Group had a 13.0 per cent. holding. The minority
interest relating to this profit on disposal is #116,000.

4 Profit/(provision for loss) on disposal of a subsidiary and a business

                                 Six months        Six months              Year
                                      ended             ended             ended
                                    30 June           30 June       31 December
                                       2003              2002              2002
                                       #000              #000              #000

Profit on disposal of subsidiaries      280                 -               255
Provision for loss on disposal 
 of a business                         (182)                -                 -
                                   --------          --------         ---------
                                         98                 -               255
                                   --------          --------         ---------

In the six months to 30th June 2003, the Group realised a profit of #280,000
on the disposal of its interest in British Traders & Shippers Limited. In
addition, the Group also made a provision of #182,000 which relates to SWF
Citrus Inc.'s citrus estates in Florida which are in the course of
disposal.

5 Net interest payable includes #273,000 (2002 six months: #363,000 - year:
#537,000) in respect of the Group's share of associated undertakings' net
interest.

6 Taxation includes overseas taxation of #275,000 (2002 six months:
#1,339,000 - year: #3,199,000) and share of associated undertakings' taxation
charge of #1,682,000 (2002 six months: #1,306,000 - year: #2,747,000).

7 Dividends
                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000

Interim of 20p per share (2002: 20p)    519               532               528

Final for 2002 of 66p per share           -                 -             1,742
                                   --------          --------         ---------
                                        519               532             2,270
                                   --------          --------         ---------

8 The calculation of earnings per share is based on attributable profit/
(loss) divided by the weighted average number of ordinary shares in issue
which was 2,605,450 (2002 six months: 2,660,540 - year: 2,652,023).

9 Included in cash at banks and in hand of #162,352,000 (2002 six months:
#172,178,000 - year: #154,738,000) are cash and short-term funds, time
deposits with banks and building societies and certificates of deposit
amounting to #153,637,000 (2002 six months: #160,033,000 - year:
#144,439,000), which are held by banking subsidiaries and which are an
integral part of the banking operations of the Group.

10 Reconciliation of operating (loss)/profit to net cash flow from operating
activities
                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000

Operating (loss)/profit              (4,030)           (1,914)            5,989
Depreciation                          4,346             4,372             8,539
Amortisation of goodwill               (179)             (190)             (375)
Profit on sale of fixed assets          (93)              (95)             (250)
Decrease/(increase) in working 
 capital                              9,503            12,203            (3,871)
Net (increase)/decrease in funds
 of banking subsidiaries             (9,198)          (12,344)            3,250
Currency adjustment                   1,023             1,211              (472)
                                   --------          --------         ---------
Net cash flow from operating 
 activities                           1,372             3,243            12,810
                                   --------          --------         ---------

11 Reconciliation of net cash flow to movements in net debt

                                 Six months        Six months              Year
                                      ended             ended             ended
                                  30th June         30th June     31st December
                                       2003              2002              2002
                                      #'000             #'000             #'000

Decrease in cash in the period       (1,968)           (4,008)           (5,239)
Cash (inflow)/outflow from 
 changes in debt and financing         (999)           (2,718)            1,022
                                   --------          --------         ---------
Change in net debt resulting
 from cash flows                     (2,967)           (6,726)           (4,217)
Businesses sold                         136               666            (3,557)
New finance leases                        -                 -              (824)
Translation differences                (923)             (944)              219
                                   --------          --------         ---------
Increase in net debt in the period   (3,754)           (7,004)           (8,379)
Net debt at beginning of period     (57,417)          (49,038)          (49,038)
                                   --------          --------         ---------
Net debt at end of period           (61,171)          (56,042)          (57,417)
                                   --------          --------         ---------

12 The accounts to 30th June 2003 have been prepared on the basis of the
accounting policies set out in the financial statements for the year ended
31st December 2002. The six months figures are unaudited and have not been
reviewed by the company's auditors. The figures for the year ended 31st
December 2002 are an abridged statement from the Group's accounts at that
date which have been delivered to the Registrar of Companies. The Auditors'
Report on these accounts was unqualified.

13 The interim dividend of 20p per share is payable on 7 November 2003 to 
shareholders on the register on 17 October 2003.

14 The interim report will be posted to shareholders and will be available to
the public this afternoon, 11 September 2003.

Press enquiries
Malcolm Perkins, Chairman
01622 746655







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